REAL 4000 Study Guide - Final Guide: Quitclaim Deed, Concurrent Estate, Fixed-Rate Mortgage
Document Summary
What is real estate comprised of: physical structure (improvements) Air space is key for new development opportunities. Real property vs. real estate and the bundle of rights: real property: the interests, benefits, and rights inherent in the ownership of land. Rights = use, possess, dispose: real estate: the land and its permanent improvements. Why is real estate unique: immobile inputs. Fixed supply of land: localized and segmented markets. Rarely two identical pieces of property: asymmetric information. Role of brokers and agents to explain asymmetric info. Home inspectors are used to eliminate asymmetric info: interdependence of land use. Living in downtown athens may be more expensive but you have access to more amenities and don"t have to worry about driving or parking. Brokerage fee can be greater than 5% of value: durability of investment. Costs a lot to trade but if homes are built well, they can last many years: long gestation periods (time until asset is occupant ready)
